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Global Brands

Research International Observer 2002

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How to balance?

LocalGlobal

Universal Individual

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We talked with...

§ 1500 young urban consumers

§ 41 countries & 52 cities

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If I wear Nike there is no need to say anything, if I choose another brand it is as though I were stating something that I have to explainItaly

The whole world loves it, you feel you are above others if you own Louis VuittonHong Kong

I can walk on the street with my head up if I’m wearing a genuine brandPhilippines

If I could, I would die for a Chanel suitArgentina

Global brands make us feel citizens of the world, and we fear their leaving because they somehow give us an identity Argentina

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Disconnections

Real worldIdealised world

Political SelfConsumer Self

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I assume most, if not all, big companies use “cheap labor” so it is useless to careUSA

I know about Nestle and their milk powder scam … but at the end of the day, one Kit Kat can’t make much of an impactUK

I know Nike has sweat shops, like other manufacturers, but at least these people have a jobGermany

An Individual consumer has no power and his or her actions have almost no impactMexico

Because it does not affect you, the brand is so important that you forget about itSpain

At the end of the day you are still part of a community and a fashion culture. I couldn’t go just from Nike to slopsSA

It is so far away from your own situation. It is not your mother who gets exploited, you know?New Zealand

Tommy Hilfiger publicly said that he did not intend his clothes to be marketed for Latin Americans/ black people, but I like them and still buyBlack respondent, El Salvador

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Don’t lie to me

Doing “bad”

Doing good

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Dealing with politicisation & homogenisation

§ Politicisation cannot be denied

§ Consumers reject homogenisation

§ How to make those critical connections?

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Route 1: Balancing Global - Local

LocalGlobal

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Local brands show what we are, global brands show what we want to be...Costa Rica

Global brands make you feel part of something bigger, and give a sense of belongingNZ young adult

We are using something great which is available all over the worldIndia

Local brands have to deal with the issue of social responsibility to the community that they serve, whereas global brands do not feel obligated to do anythingSouth Africa

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4 routes to get the balance right

Type of brand

Type of category

Level of aspiration

Type of culture

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Prestigebrand

Masterbrand

Superbrand

GLoCalbrand

Global Individualists

GlobalSensitives

CulturalIndividualists

Cultural Sensitives

High High medium Low medium Low

Luxury High techFashion

Automotive

FashionCosmeticsElectronics

Personal CareHouseholdProductsBanking

Insurance

FoodLocal retail

Type ofbrand

Category

Desired aspiration

Culture

Level of localisation required- +

StartA localisation road map

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Masterbrands

GloCalbrands

Super brands

Prestigebrands

Universal

OriginCat

egory

Myt

h

Consumers distinguish 4 types of global brands

Brands

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Master brands

‘It is a status symbol but anyone can have it …’

Brands

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Prestige brands

‘Increases the value of the one who uses it’

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Super brands

‘Trusted, silver medal winners’

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GloCal brands

‘Feel close’

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Anchor in origin, keep the myth alivePrestigeBrands

Keep the myth relevant, translateto local cultures, individualise

MasterBrands

Innovate, translate, adapt to local cultures

Behave like a citizen

Super Brands

GloCalBrands

Strategic connection from brand perspective

Brands

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Weak/no displayvalue/low aspiration

Highly display/Aspiration

Factor 2: Type of category

Brands

Category

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Weak/no displayvalue/low aspiration

Highly display/aspiration

Factor 3: Level of aspiration

Brands

Aspiration

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Global Individualists

Global SensitivesCultural Sensitives

Cultural Individualists

Factor 4: Type of culture

Individualist

Collectivist

Local focus Global focusSouth Africa

USA

New Zealand

Austria

UK

Australia

France

Russia

Spain

Netherlands

Belgium

Germany

Sweden

JapanHK

Italy

Czech

India

Mexico

Turkey

Greece

Thailand

Philippines

Malaysia

China

Indonesia

ArgentinaBrazil

SingaporeKorea

Costa Rica

Panama

ColombiaEl Salvador

Ghana

Zimbabwe

KenyaHungary

Chile

Finland

Brands

Culture

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“Global brands make us feel citizens of the world and we fear their leaving because they somehow give us an identity”

Argentina “Brazilians are Americanised”

Brazil

“By hook or by crook we’ll have our brands’ Even the plentiful (and cheap) flea markets are full of ‘Brands’”

Zimbabwe

Type of culture: Global Sensitives

Brands

Culture

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Type of culture: Cultural Sensitives

“Brands should take care of feelings of people in that country. It should be suitable to their culture… not touch culturally sensitive points like beef oil in French fries which is against our values”

India

“We wish to project success and prestige. We need to preserve our traditional values”

Mexico

Brands

Culture

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Type of culture: Cultural Individualists

“People use them all the time, but it is not personal. They provide good products, but the relationship isn’t intimate”

Australia “We don’t actually want them to be South African - we just want them making an effort to impress and try to relate to our markets”

South Africa

“Imperialistic threat which undermines French cultural specificity”

France

Brands

Culture

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Type of culture: Global Individualists

“The Dutch have a global mind, we openly face the world”

Holland

“I want to find the brand, not the brand finding me”

Sweden

“We Japanese love ‘the High-class Brands’ !”

Japan“Pragmatism, materialism, self-centered-ness, looking up to the West”

Singapore

Brands

Culture

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Localisation need from cultural perspective

Individual connectionlow need for localisation

Translate to local cultureHigh level of localisation

Individual connectionthrough local filter

Individualist

Local focus

Collectivist

Global focus

Brands

Culture

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Prestigebrand

Masterbrand

Superbrand

GLoCalbrand

Global Individualists

GlobalSensitives

CulturalIndividualists

Cultural Sensitives

High High medium Low medium Low

Luxury High techFashion

Automotive

FashionCosmeticsElectronics

Personal CareHouseholdProductsBanking

Insurance

FoodLocal retail

Type ofbrand

Category

Desired aspiration

Culture

Level of localisation required- +

StartA localisation road map

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Route 2: Balancing Universal - Individual

Universal Individual

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WAVEBrand as lifestyle projection

TWO

WAVEBrand as personal projection

THREE

Brand as label for guarantee and trust

WAVEONE

Wave Three branding

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Masterbrands

GloCalbrands

Superbrands

Prestigebrands

Universal

OriginCat

egory

Myt

h

Tribalbrands

Tribal brands

Brands

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Role of brand

Benefit

Current geography

Target

Wave One

Physical quality

Trust/ Reassurance

Africa/China/India

Mass

Wave Two

Lifestyle projection

Affinity/Identification

Developed world

Mass

Wave Three

Personal projection

Authenticity/Discovery/Invention

Sophisticated consumers in Europe/Asia/USA

Fragmented and proliferated

Consumers have control through Wave Three branding

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Future of brands...?

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What next?

Investigate Wave Three branding

Understand your brand at a global and local level

Look for future opportunities

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Appendix

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Appendix: Content

§ About RIO and the RIO studies

§ Participating countries

§ List of Global brands

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Research International Observer

§ Research International Observer (RIO) is a bi-annual qualitative research program carried out by RI offices all over the world. The purpose is to provide those involved with marketing and advertising with a better understanding of the world’s consumers

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Research International Observer

To date, RIO studies have included:

§ Nutritional Trends and the World: 23 countries 1992

§ The Evolution in the role of Women versus Men: 26 countries 1992

§ The Body and the Environment: 28 countries 1993

§ Teenagers and the World: 27 countries 1994/5

§ Communicating with Young Adults: 34 countries 1995/6

§ Connecting with Baby Boomers: 16 countries 1996/7

§ The Wild Spirit of Man? Connecting with Men in the Millennium: 46 countries 1998/9

§ E Commerce: The World’s Consumers have their Say: 37 countries 2000/1

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EuropeAustria

BelgiumCzech Republic

Denmark

Finland

France*

Germany*

GreeceItaly*

Hungary

Netherlands

Russia

Spain

SwedenTurkey**

UK*

AfricaGhanaKenyaSouth Africa**Zimbabwe

Asia/PacificAustralia*China**Hong KongIndia**Indonesia**Japan*KoreaNew ZealandMalaysiaPhillipinesSingaporeThailand

AmericasArgentinaBrazil**ChileColombiaCosta Rica PanamaEl SalvadorMexico**USA

* activist

** lower socio-economic groups

41 countries

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GuinnessStarbucksYahoo!Johnnie WalkerBacardiPhilipsFordToyotaShellRenaultBMWNintendoGapNikeIkeaPizza HutChanelLevi s

AdidasSwatchBenettonCoca-ColaMarlboroEvianPepsiCamelDanoneNestleMarsLiptonKnorrEricssonBody ShopGillette

DoveVirginDisneyKleenexL`OrealMcDonaldsMicrosoftIBMNokiaAmerican ExpressVisaSonyMotorolaHeinekenNescafeHeinzKraft

51 global + (20 local) brands